NOTICE OF DECISION RELEASE OF STATE INTEREST State Selection File GS-5450 Alaska Native Veteran Dingell Act Allotment application AA-98021

State of AlaskaDepartment of Natural ResourcesDivision of Mining, Land and Water NOTICE OF DECISION RELEASE OF STATE INTERESTState Selection File GS-5450 Partial Relinquishment of State Land SelectionAS 38.05.035(a)(11), AS 38.05.035(e), ANILCA Sec. 906(f)(2), ALTAA Sec. 404(a)(4)(B) ActionProposed relinquishment of State of Alaska (State) surface estate selection while retaining the State’s subsurface selection on all minerals excluding sand and gravel in favor of Dingell Act allotment application AA- 98021. AuthorityThe 2019 John D. Dingell, Jr. Conservation, Management, and Recreation Act (Dingell Act) (Pub. L. 116-9) provides that eligible Alaska Native Vietnam Veterans may request conveyance of Statehood Act land selections and that the State may voluntarily relinquish either fee title or surface estate interests to facilitate conveyance of the lands to the Native Veteran. Lands were selected by the State under Sec. 6(b) of the Alaska Statehood Act (Pub. L. 85-508). The ability

to relinquish Statehood Act selections was codified in Sec. 906(f)(2) of the Alaska National Interest Land Conservation Act (ANILCA) (Pub. L. 96-487). Sec. 404(a)(4)(B) of the Alaska Land Transfer Acceleration Act (ALTAA) (Pub. L. 108-452) provides that the State shall relinquish selections in excess of 125% of its remaining entitlement. The provisions of Alaska Statute (AS) 38.05.035(a)(11) allow the Director of the Division of Mining, Land and Water (DMLW) to manage Statehood Entitlement selections. AS 38.05.035(e) provides authority for disposals of lands, resources, property, or interests in them. Article XIII of the Alaska Constitution provides guiding principles for maximum use of state lands and resources and authority for disposals of interests in lands and resources. Background The Dingell Act allows eligible Alaska Native Vietnam Veterans (applicants) to select up to 160 acres of federal land as an allotment. Available lands are those managed by the Bureau of Land Management (BLM), excluding lands withdrawn by Public Land Orders (PLOs), the Trans-Alaska Pipeline (TAPS) right-of-way, military withdrawals, Conservation System Units (CSU’s) including the National Forests, and the National Petroleum Reserve-Alaska (NPR-A). Lands selected by the State or Alaska Native Claim Settlement Act (ANCSA) Corporations are classified as available regardless of priority status. The State and ANCSA Corporations have the option to relinquish or deny relinquishment of selections for any reason within 60 days of receiving BLM’s request. Administrative Record The selection file for state selection GS-5450 constitutes the administrative record for this action. Location The allotment selection is located in DNR's Southeast Region, within Section 33, Township 28 South, Range 59 East, Copper River Meridian. USGS Map Coverage: Skagway B-2 Platting Authority: Municipality of Skagway Regional Corporation: Sealaska Region, Inc. Federally Recognized Tribe: Skagway Village Skagway Traditional Council (STC) Please see Attachment A for a visual depiction of the allotment selection. Legal DescriptionThose lands including approximately 160 acres on the west banks of the Taiya Inlet, in the east half of Section 33, Township 28 South, Range 59 East, Copper River Meridian, Alaska. Selection History On Dec. 31, 1992, State selection GS-5450 was filed for all available lands within T. 28 S., R. 59 E., and T. 28 S., R. 60 E., C.R.M. Public notice of State selection was completed in Aug. 1993. In April 2006, BLM requested the State to reprioritize these lands, amongst others, to a higher priority and inclusion in the Ownership Priority List (OPL) for conveyance to the State to facilitate easier management. In response to BLMs request, representatives for the State at the time responded with “The majority of these lands have been ranked as low priority dating back to 1993 and are part of those lands the State is considering for relinquishment. We have determined that it is not in the States best interest to elevate these lands.”. On Aug. 4, 2023, Realty Services received a request from BLM to relinquish approximately 160 acres for a Dingell Act allotment serialized as AA- 98021. The proposed allotment lands are located near Skagway within Secs. 33, T. 28 S., R. 60 E., C.R.M. DMLW and Agency Review The lands are currently selected under GS-5450 and are ranked as a priority 2. Information and comments received from multiple sections within DMLW prior to and during agency review have been considered and included in the preparation of this decision. The proposed relinquishment documents were distributed to State agencies for review from December 19, 2023, through January 30, 2024. The intent of an agency review is to request comments from agencies that may be affected by the selection relinquishment. Agencies are given the opportunity to evaluate and comment on the relinquishment to determine if it is in the State’s best interest to release the land selection and, if so, provide supporting reasons. The following agencies or groups were included in the agency review: DNR Division of Parks and Outdoor Recreation: DPOR has no issues. DMLW Realty response: Thank you for your comment. DNR Division of Oil & Gas Leasing Section: Thank you for the opportunity to review the proposed relinquishment. The Division of Oil and Gas has no objection to the proposed action. The Division does not request DMLW maintain a selection on the mineral estate. Previous research in the area shows no potential for oil or gas or geothermal. DMLW Realty response: Thank you for your comment. Realty intends to retain the State’s selection on the subsurface estate, excluding sand and gravel. Under the Dingell Act, sand and gravel will be conveyed to the applicant. Dept. of Transportation: Thank you for the opportunity to review the proposal. The Alaska Department of Transportation & Public Facilities has no comment at this time. DMLW Realty response: Thank you for your comment. DNR DMLW PAAD Section: With the way this proposed allotment connects to the allotment to the north and the ANCSA Selection to the south There is not a natural access through the allotment to the public lands to the west. This could pose access difficulties in the future if the state takes patent to the lands to the west. The proposed allotment is meandered from Taiya Inlet and there are no RS 2477’s through or near the allotment. DMLW Realty response: Thank you for your comment. Public access to the lands to the west is possible through a gap along the sections line between sections 21 and 28, as well as to the south of the allotment. DNR Division of Geological and Geophysical Surveys (DGGS): I took a look at the Alaska Resource Data File, the geologic maps of the area, and the active and closed mining claims in the area. My assessment is that mineral resource potential is low here and is not an issue of concern for the proposed allotment. DMLW Realty response: Thank you for your comment. Realty intends to retain the State’s selection on the subsurface estate, excluding sand and gravel. Under the Dingell Act, sand and gravel will be conveyed to the applicant. The applicant will be made aware of the radon concerns as well as seismicity, tsunami, and landslide potential. DNR DMLW Land Conveyances Section: The Land Conveyance Section has no objection to Dingell Allotment AA-98021. DMLW Realty response: Thank you for your comment. Department of Fish and Game Division of Wildlife Conservation: The Alaska Department of Fish and Game (ADF&G) reviewed the proposed relinquishment of 160-acres of state-selected land to BLM in order to convey these lands to a Native Veteran allottee. These lands are located in Sec. 33, T. 28 S., R. 59 E., CRM along the western side of the Taiya Inlet. The mountainous area above the parcels contain high-quality goat habitat. Conveyance of these acres into private ownership may have a limited effect on goat hunters in the area.However, public access to these parcels by hunters is only feasible from the few locations along the coastline where boats can safely land.The coastline within this parcel appears fairly steep.ADF&G has no objection to the relinquishment of this selection. Thank you for the opportunity to provide comments. DMLW Realty response: Thank you for your comment. DNR DMLW Water Section: No comments from Water Section. DMLW Realty response: Thank you for your comment. The following agencies or groups were included in the agency review, but no comment was received: Department of Agriculture. DNR DMLW Statewide Abatement of Impaired Land (SAIL) Section DNR DMLW RADS Section DNR DMLW Mining Section DNR DMLW Southeast Regional Land Office Public Comment Public notice of the proposed relinquishment was conducted from December 19, 2023, through January 30, 2024. The notice was posted to the State of Alaska Online Public Notice System. Copies of the notice were sent to the applicant, the Skagway and Haines Post Offices, Skagway Public Library, Haines Borough Public Library, Haines Borough Manager, Central Council of the Tlingit and Haida Indian Tribes of Alaska, Skagway Traditional Council, Bureau of Land Management (BLM), BLM Glenn-Allen Field Office, Bureau of Indian Affairs (BIA) Regional Realty Office and Title Services Center, Chilkoot Indian Association, Chilkat Indian Association, Skagway Village, Klukwan Incorporated, U.S. Forest Service Juneau Ranger District, Municipality of Skagway Borough, Alaska Department of Natural Resources Commissioners Office, Alaska State legislature, and adjacent landowners. No public comments were received during the public comment period. Discussion and AlternativesThe State is supportive of the federal Dingell Act Native Veteran allotment program and will relinquish selections when it is in the State’s best interests. In addition, the State’s land selections are currently over-selected, under federal law the State is required to relinquish selections in excess of 125% of the remaining entitlement. To reduce over-selection, the State will consider relinquishing surface estate interests in lower-priority state entitlement lands to facilitate conveyance to Dingell Act applicants. During the most recent State selection reprioritization, the lands in this township were ranked a priority 2 due to their proximity to Skagway, potential logging opportunities, and reduced management costs. After discussions with the Division of Forestry, it appears that the general area is neither economically conducive to logging nor valid for sequestration under the State’s new carbon credit program. There are currently seven Dingell Act Native Allotment applications in this township along the west bank of the Taiya Inlet and along the mountainside. Several selections abut one another along Taiya Inlet and could potentially impact access to public or private lands. There is public access to lands west of this allotment one mile to the north along the section line between sections 21 and 28, and immediately to the south. DGGS Geologic hazards staff have previously identified the lands on the west side of Taiya Inlet as highly susceptible to elevated radon concerns as well as seismicity, tsunami, and landslide potential. Moderate to high levels of seismicity in the area combined with the steep slope of the selection and high rainfall could present substantial landslide risk to any development in the area. The likelihood of increased levels of radon presents additional potential risk to the allottee. Indoor radon tests around Skagway range from 1.1 to 39.9 pCi/L, with an average of 7.35 pCi/L. The Environmental Protection Agency’s (EPA) Action Level for radon is 4 pCi/L; the EPA suggests homeowners consider radon mitigation for test results of 2–4 pCi/L. Any home, school, or building can have high levels of radon and should be tested. Seven tsunamis have been reported in Skagway with a maximum height of almost 30 feet. The steepness of the parcel suggests that only its lowest portion would be affected by a tsunami wave. The surrounding lands are owned by the State of Alaska, the Municipality of Skagway, the Mental Health Trust, the U.S. Forest Service, or have been patented to private landowners by the BLM. Skagway occupies sections 1, 2, 11, 12, and 14 in this township. The State relinquishing the surface estate of the parcel to facilitate conveyance to the applicant is keeping in character with the surrounding mixed private and public land ownership pattern. Relinquishment also supports the success of the Dingell Act Allotment program and provides an opportunity for a Native Vietnam War veteran to obtain an allotment that was denied due to circumstances related to military service. The State considered the following alternatives in adjudicating the request for relinquishment: Alternative 1: Relinquish the State’s land selection in full (both surface and subsurface). Alternative 2: Maintain State land selection. Alternative 3: Relinquish the State’s surface estate selection and maintain the State’s subsurface selection on all minerals excluding sand and gravel. DecisionThis decision considers all public and agency review comments received. After considering the facts and input described above, the Department finds it is in the best interest of the State to choose Alternative 3 and relinquish the above-described state selection of the surface estate while maintaining the subsurface selection to facilitate conveyance of Dingell act allotment application AA- 98021. Recommended by: ___________________________________ ______________________________Walter “Z” Zimmerman Date of SignatureNatural Resource Specialist 2Realty Services SectionDivision of Mining, Land and WaterDepartment of Natural Resources Approved by: ___________________________________ ______________________________Jane Boer Date of SignatureRealty Services Section ChiefDivision of Mining, Land and WaterDepartment of Natural Resources Approved by: ___________________________________ ______________________________Commissioner Boyle Date of SignatureDepartment of Natural Resources ReconsiderationAn eligible person affected by this decision, and who provided timely written comment or public hearing testimony to the department, may request reconsideration to the DNR Commissioner per AS 44.37.011 and 11 AAC 02. Any request for reconsideration must be received by the Commissioner’s Office within twenty (20) calendar days after issuance of the decision under 11 AAC 02.040. The Commissioner may order or deny a request for reconsideration within thirty (30) calendar days after issuance of the decision. If the Commissioner takes no action on a request for reconsideration within thirty (30) days after issuance of the decision, the request for reconsideration is considered denied. The Commissioner’s decision on reconsideration, other than a remand decision, is a final administrative order and decision of the department. An eligible person must first request reconsideration to the Commissioner before seeking relief in superior court. The Alaska Court System establishes its own rules for timely appealing final administrative orders and decisions of the department. Reconsideration/appeal may be mailed or hand-delivered to the DNR Commissioner’s Office, 550 W. 7th Avenue, Suite 1400, Anchorage, Alaska, 99501; or faxed to (907)-269-8918 or sent by electronic mail to dnr.appeals@alaska.gov. Reconsideration must be accompanied by the fee established in 11 AAC 05.160(d)(1)(F), which has been set at $200 under the provisions of 11 AAC 05.160(a)-(b). A copy of 11 AAC 02 is available on the department’s website at https://dnr.alaska.gov/mlw/pdf/DNR-11-AAC-02.pdf.